Dear Client:
It is the first issue of the year, and so let’s get into what strategies the major retailers are looking at as they have made and make their cold box and display plans for 2022 and 2023.
For answers, we look to Bump Williams at BWC, retail specialist. He groups the big retailer strategies into five buckets, (and here I summarize):
FIRST MOVERS. These retailers are on fire to drive space and resources to new and hot categories, like ranch water and new seltzers/fmbs.
Indeed, when you look at year-to-date Neilsen scans (to mid-December), out of the top 25 new brands in 2021 with zero sales a year ago, 20 of them were hard seltzers. The rest were, of course, FMBs and a cider:
Angry Orchard Peach Mango cider
Cayman Jack variety pack
Guinness Nitro Cold Brew
Wicked Weed IPA variety pack
Coors Pure
These will be brands to watch going into 2022.
-GROWERS NOT SHOWERS. These retailers lean into bigger brands that are growing raw dollars in the past year (not share), and this mainly includes hard seltzers. But when you get past the seltzers, you get a few brands that stand out:
Modelo Especial, (on a huge base)
Bud Zero
Mich Ultra Assorted
Heineken 0.0
Busch Light Apple
Sierra Nevada Big Little Thing
Cayman Jack Margarita
Two things stand out: there are two NA beers on this list, and the Cayman Jack brand family (a Mark Anthony/Mike’s brand) is on two strategic lists so far.
-GOATS. This group of “astute” retailers will focus on the OG’s, which maybe arnen’t growing, but still drive traffic and basket rings. Yep, domestic premiums and imports.
While these top beer brands are stalwarts, almost all are in decline (22 of the top 25, in fact).
-IMPACT BRANDS. These “more aggressive” retailers will focus on leading growth brands using BWC’s algo that considers dollar size, growth, price, velicity and distribution. Bump makes mention of Modelo, Coronita Extra, and Heineken 0.0, Voodoo Ranger, and Twisted Tea in this group.
There you have it. Bump and his crew declare that while 2021 was a tough year for the off-premise, the “pros didn’t panic.” The successful ones “made it easy for shoppers to find what they were looking for” while distributors maintained a portfolio strategy which was “revolutionary in 2021 and I think we will continue to see their business evolve and grow to meet consumer demands.”
And finally, the “changing landscape of Beverage Alcohol and Cannabis consumption will unfold in a big way this year.”
Yes indeed.
Here’s to beer, in the new year.
Until tomorrow,
Harry, Jenn, and Jordan
“If you set your goals ridiculously high and it’s a failure, you will fail above everyone else’s success.” -James Cameron
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